They Will Throw the Book at Facebook

Facebook founder, Chairman and CEO Mark Zuckerberg rings the opening bell of the Nasdaq stock market on May 18, 2012, from Facebook headquarters in Menlo Park, Calif. Photograph by Zef Nikolla/AP Photo/Nasdaq via Facebook

The details emerging from the consent order may also add ammunition to dozens of class actions, which a judge ordered to be consolidated earlier this month. The testimony disclosed by Massachusetts could be used by prosecutors attempting to make a case that Facebook and Morgan Stanley misled investors. …The real liability for Facebook and Morgan Stanley is yet to come.

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